After record-breaking grain harvests in 2013 caused major backlogs in grain shipping and monetary losses for farmers across the country, Canada has passed legislation entitled the Royal Assent of the Fair Rail for Grain Farmers Act (Bill C-30) which outlines requirements for the country’s railroads transporting agricultural commodities or products to market. The Act includes amendments to the Canada Transportation Act and the Canada Grain Act and aims to increase capacity, reliability and accountability of the rail industry. The Act will require railroads to transport 1 million tons of grain per week to August 3rd, extends interswitching rights through regulations to 160 km for all commodities, strengthens farmers’ contracts with grain companies, and will allow shippers to be directly compensated for losses incurred due to the railroad’s failure to meet their service obligations under the Canada Transportation Act.
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